House C’ttee demands proper revenue, details of expenditure from ICRC, NERC others
By Tom Okpe
The House of Representatives Committee on Finance has directed Infrastructure Concession Regulatory Agency, ICRC, Nigeria Electricity Regulatory Commission, NERC, Nigeria Sugar Development Commission, NSDC, to provide details of their budget performances in order to ascertain their level of compliance with extant financial regulation, laws.
The directive was given through resolutions when the agencies appeared before the Committee at its resumed interactive session, held by the Committee with key agencies on budget performance on Tuesday.
The ICRC was directed by the Committee to provide details of all concessionaires and fees, charged since 2008, after a presentation by the Director, Infrastructure of the agency, Shehu Sani Danmusa who represented the Director General, DG, Dr Jobson Ewalefoh.
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Chairman of the Committee, Rep James Faleke and members who picked holes in the presentation, especially, breakdown of revenue and expenditures said, there is need for the agency to present a comprehensive detail as required by standard accounting and financial practices.
In his submission, the Chairman, NERC, Sunusi Garba who presented the income and expenditure of the agency’s 2023 and 2024, informed the Committee that, the main sources of revenue of the agency is the Electricity market.
“The law provides that we prepare a budget and take just enough from the electricity market to fund our operation. Meaning that, the amount we take from the market depends on the budget, we prepare.
“So, in the early days of the Commission, when the market was a little immature, the Commission was taking money from the market and the federal appropriation. But in the last two years or even three years, the commission has been 100% dependent on the workings of the market for our revenues,” he said.
The Director Finance and Administration of the agency, explained that, the law establishing the Commission provides that 80% of the operating surplus at the end of the year should be transferred to consolidated revenue,
The Committee therefore, directed that, the NERC also submits all details of its revenues, expenditures as well as invoices to industry players on energy purchases and reconciliations.
Similarly, the Committee also picked holes in the expenditures of the National Sugar Development Council, NSDC, over its frivolous spendings on non-essential like foreign travels, office renovations while neglecting core responsibilities to develop the Sugar sector.
In his presentation, Director General, DG, NSDC, Kamal Bakari in his presentation informed the House Committee that the organisation is funded principally, by the Sugar Levy and other revenues.
However, the DFA explained that, other revenues which include; VAT, Withholding Tax and others, realized as revenue was remitted to FIRS and receipted which they promised to provide them to the Committee.
Chairman of the Committee, Faleke noted that concern of the Committee was the Internally Generated Revenue, IGR, of the Commission.
He informed that, looking at the trajectory of the Commission and its activities, Nigeria has a long way to go, compared to Brazil which he said are cultivating millions of hectares through advanced mechanisms and agriculture, and are utilizing all Sugar products, including producing fuel for cars.
The Committee therefore directed the Commission to do due diligence and provide it with a more comprehensive records that it will use to determine it’s budget performance.
